According to Cushman & Wakefield, the German office investment market remained stable in 2025 despite challenging economic conditions. While the first half of the year was still characterized by caution, market activity gained momentum in the second half. The total transaction volume for the year amounted to €5.13 billion, thus remaining at the previous year's level. Compared to the previous cyclical low in 2023, office investment volume in 2025 increased by 17%.
Framework conditions are gradually improving
Market participants are increasingly benefiting from clearer price relations and more stable financing conditions. "Price formation has improved over the course of the year. Many investors have sufficient capital but continue to act very selectively. In the office segment, it is apparent that quality and location are once again becoming more differentiating, and stable financing conditions are strengthening market confidence. What is crucial is that the market does not fall back into old patterns, but consistently continues on the path of careful, data-driven transaction assessment," explains Daniel Sander, Head of Office Capital Markets Germany at Cushman & Wakefield.
Foreign investors support annual results
Individual transactions reached a volume of around 4.70 billion euros in the full year 2025, which is about 5% above the previous year's level. Portfolio sales amounted to around 0.43 billion euros, showing a year-on-year decline of more than one-third.
With a market share of almost 60%, or 3.01 billion euros, the office transaction volume continued to be predominantly driven by domestic investors, who, in absolute terms, invested about one-fifth less capital in German office properties than the previous year. International investors, on the other hand, significantly increased their engagement, raising their investments by 65% to 2.12 billion euros. With a market share of around 40%, they thus made a substantial contribution to market stabilization.
Top 7 locations account for more than three-quarters of total office transaction volume – focus on established office areas The seven leading office investment locations recorded a transaction volume of around €3.97 billion in 2025, representing more than three-quarters of the total office transaction volume and approximately 5% higher than the previous year (2024: €3.79 billion). Outside the top 7 locations, office properties worth around €1.16 billion were traded, a decline of about 13% compared to 2024. Overall, transactions were primarily concentrated on high-quality properties in established office areas, while peripheral locations continued to be considered selectively.
The sale of the 'Upper West' high-rise in Berlin is counted among the largest office sales of 2025. The property was acquired in the first quarter of 2025 by the Schöller Group from the Signa Group for a purchase price of around 450 million euros. Also among the most significant transactions of the year was the sale of the two Berlin office properties 'Schönhauser Tor' and 'Edisonhöfe', which were acquired in the third quarter of 2025 by Attestor Capital for around 240 million euros. In Munich, the sale of 'R 139' is also among the largest office deals of the year: Generali acquired the property in the first quarter of 2025 from Art-Invest for a purchase price of around 150 million euros.
In 2025, Berlin reached an office investment volume of around 1.16 billion euros, marking an increase of almost 60% compared to the previous year. Hamburg totaled around 0.75 billion euros, slightly below the previous year's figure of 0.79 billion euros. Frankfurt am Main achieved a volume of nearly 0.30 billion euros, around 70% below the previous year's result. In Düsseldorf, the volume amounted to approximately 0.27 billion euros, reflecting an increase of about 5% year-on-year. Cologne reached around 0.65 billion euros, marking an increase of almost 70%. Munich reached around 0.78 billion euros, representing a rise of about 72%, while Stuttgart, at around 0.06 billion euros, was significantly below the 2024 result.
Prime Office Yields: Increasing Gap Between CBD and Peripheral Areas
Prime yields for office properties in Germany's Top 7 markets averaged 4.90% at the end of 2025, remaining stable compared to the previous quarter. Yields in central locations were largely unchanged over the year, while peripheral locations saw further increases. Accordingly, prime yields in peripheral submarkets of the Top 7 averaged 6.37%, up 37 basis points from the previous year. Overall, there is a growing yield gap between central and peripheral locations, reflecting the continued strong focus on core products in CBDs and the more selective valuation of locations outside prime areas.
Moderate market recovery will continue
"Overall, the results show that the German office investment market continued to stabilize in 2025. Investor activity focused primarily on the major locations and, in some cases, individual transactions with significant volumes. This stability will also be important for the start of 2026, as investors become increasingly active again and structure transactions," said Daniel Sander.
"From a research perspective, the market activity underscores that investors are once again differen-tiating more strongly between quality, location, and risk. The increasing importance of international investors, as well as the focus on core locations, point to a gradual but sustainable normalization of the office investment market," added Alexander Waldmann, Team Leader Research & Insight Germany at Cushman & Wakefield.
